Writes to state govts to take active part in Atal Pension Yojna which has seen tepid response
TO BOOST further participation in the Atal Pension Yojna, Pension Fund Regulatory and Development Authority (PFRDA) has written to all the state government to take active part in the pension scheme. Atal Pension Yojna which was launched a few days after Pradhan Mantri Jeevan Jyoti Bima Yojna (PMJJBY) and Pradhan Mantri Suraksha Bima Yojna (PMSBY), has seen tepid response till now.
Industry players say an advertising campaign similar to the promotion of PMJJBY and PMSBY is also being planned by the government. According to the data from Jansuraksha website, Atal Pension Yojna (APY) has seen enrollment of around 5.28 lakh participants. The two other insurance schemes, PMJJBY and PMSBY, have seen enrollment of around 2.6 crore and 7.9 crore respectively, as on July 20, 2015 states the Jansuraksha website.
Hemant Contractor, chairman of PFRDA says, “Unlike PMJJBY and PMSBY, this a long-term pension scheme and people will take some time before they start investing. But around 5.2 lakh people have already enrolled for the scheme and we hope this number will increase over time. We have already written to all the sate governments asking them for their participation. Also we have discussed this scheme with the state level banks and hope we get more investors.”
APY is a pension scheme more focused on the unorganised sector workers. Under the APY, guaranteed minimum pension of Rs 1,000/-, Rs 2,000/-, Rs 3,000/-, Rs 4,000 and Rs 5,000/- per month will be given at the age of 60 years depending on the contribution by subscribers. This scheme is administered by the PFRDA and the government.
A senior industry official on the condition of anonymity said, “In the next few days we will see many more advertising campaigns for the pension scheme. People are still not aware about this product and it will take some time for people to invest in this scheme. Unlike PMJJBY and PMSBY, here investors needs to stay invested for more than two decades (or depending upon their age) so they are unwilling to commit regular investments in this scheme.”
In Atal Pension Yojna, the age of the subscriber should be between 18 – 40 years and they will start getting monthly pension from the age of 60 years.
Many players believe that, with lack of social security for thousands of people in India, APY can help many people during their retirement phase. Industry officials are hopeful that, steps taken by PFRDA would get positive results in the months to come.